REG - Pantheon Resources - Acquisition of Key Leases & Operational Update

Pantheon ResourcesAnnouncement

10/11/2022 07:00

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RNS Number : 9105F  Pantheon Resources PLC  10 November 2022

 

 

10 November 2022

 

Pantheon Resources plc

Successful Acquisition of Key Leases in State of Alaska's North Slope
Areawide Lease Sale

Operational Update

 

Pantheon Resources plc ("Pantheon" or "the Company"), the AIM listed oil and
gas company with a 100% working interest in all of its oil projects spanning
c. 153,000 acres adjacent and near to transportation and pipeline
infrastructure on the Alaska North Slope ("ANS"), is pleased to provide the
following operational update:

Successful Bidding at State of Alaska's North Slope Areawide Lease Sale

Pantheon is pleased to announce the successful acquisition of approximately
40,000 acres in the State of Alaska's North Slope Areawide Lease sale.
Pantheon was successful on all bids submitted. The new leases are
strategically positioned in two areas contiguous or adjacent to the Company's
current acreage on its north western boundary, covering the extension of the
Theta West project, and east, capturing the area adjacent to the junction of
the Alkaid Unit and the Talitha Unit.

 

Pantheon had a competitive advantage in bidding for this acreage given its
sole use of the proprietary 3D seismic which covers the leases, and which is
not currently accessible by any 3(rd) parties. These acreage additions are a
direct result of detailed technical work completed by Pantheon's technical
team and its consultants at eSeis following the successful Theta West #1
discovery well drilled earlier this year.

 

Pantheon's winning bids averaged $28.00 per acre, significantly lower than
the average of the winning bids recorded on other acreage in the sale. When
the leases are officially awarded by the State of Alaska, estimated to be in
six to 12 months' time, they will come with a 10-year initial term, an annual
rental of $10 per acre, and a royalty rate of either 12.5% (four leases,
5,760 acres) or 16.67% (13 leases, 34,240 acres). These additions allow
Pantheon to continue to strategically high grade its acreage based on the
recent technical work completed by its team.

 

Alkaid #2 - Operational Update

As previously reported, the Alkaid #2 well encountered a sand blockage during
the early clean up phase of flow testing. The sand was sent for analysis and
was confirmed to be sand introduced during the fracture stimulation operations
and not formation sand. A coiled tubing unit ("CTU") was ordered to clean out
the wellbore and has now arrived on location following a 10 day delay.

 

Clean out operations continue at the Alkaid #2 well. During the wellbore
cleanout operations, conservative pumping rates are required due the tight
tolerances between the outside diameter of the CTU and the inside diameter of
the production tubing. Once these clean out procedures have been finalised,
flow testing operations will resume thereafter. This delay has not impacted
the potential of the Alkaid #2 well.

 

 

Bob Rosenthal, Technical Director, stated:

"Acquiring these leases was a highly successful outcome for Pantheon and
importantly, the acreage is in very close proximity to the established export
infrastructure. Our team has spent over a decade working this area, enhanced
recently with advanced geophysical evaluation and the analysis of the huge
dataset gained in our successful drilling of the Theta West #1, Talitha #A and
Alkaid #2 wells this year.

 

"The new Theta West acreage is in the same trap as our existing resource and
the new Alkaid acreage covers a mapped extension of the Shelf Margin Deltaic
(SMD) and Alkaid anomalies. The Theta West acreage is structurally shallower
and updip from the Theta West #1 well and should yield better reservoir
properties. Accordingly, we expect to report a material upgrade to our Theta
West project resource in due course. The acreage adjacent to the Alkaid and
Talitha Units is strategic as it allows continued development opportunities
along the Dalton Highway, along with the potential for a resource upgrade."

 

 

Jay Cheatham, CEO, added:

"Having watched the evolution of these plays as the combination of the 3D
seismic and the petrophysical analysis developed, I am delighted that Pantheon
was the successful bidder on this acreage. The geographic location both in
terms of the geological plays in contiguous acres and in relation to the
export infrastructure were important considerations. Management believes this
new acreage adds significant resource potential to our existing management
estimates of 23 billion barrels of oil in place and over two billion barrels
of recoverable resource, which we have continued to high grade.

 

"As to the operations at Alkaid #2, I reiterate my previous comments that the
blockages are inconvenient and have caused us delays, but the potential of
Alkaid #2 is unchanged. As is always the case, we cannot make a definitive
assessment of the ultimate commerciality of the well until flow testing
operations have concluded. However, we remain optimistic. I look forward to
working with the State of Alaska on these leases and the development of our
projects on the North Slope."

 

-Ends-

 

 

Further information:

 

 Pantheon Resources plc                                       +44 20 7484 5361
 Jay Cheatham, CEO
 Justin Hondris, Director, Finance and Corporate Development

 Canaccord Genuity plc (Nominated Adviser and broker)
 Henry Fitzgerald-O'Connor, James Asensio, Gordon Hamilton    +44 20 7523 8000

 BlytheRay
 Tim Blythe, Megan Ray, Madeleine Gordon-Foxwell              +44 20 7138 3204

 

In accordance with the AIM Rules - Note for Mining and Oil & Gas Companies
- June 2009, the information contained in this announcement has been reviewed
and signed off by Jay Cheatham, a qualified Chemical & Petroleum
Engineer, who has over 40 years' relevant experience within the sector.

Notes to Editors

Pantheon Resources plc is an AIM listed Oil & Gas company focused on
several large projects located on the North Slope of Alaska ("ANS"),
onshore USA where it has a 100% working interest in 153,000 highly
prospective acres with potential for multi billion barrels of oil recoverable.
A major differentiator to other ANS projects is its close proximity to
transport and pipeline infrastructure which offers a significant competitive
advantage to Pantheon, allowing for materially lower capital costs and much
quicker development times. The Group's stated objective is to create material
value for its stakeholders through oil exploration, appraisal and development
activities in high impact, highly prospective conventional assets, in
the USA; a highly established region for energy production with
infrastructure, skilled personnel and low sovereign risk. All operations are
onshore USA, with drilling costs materially below that of offshore wells.

 

Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website)
incorporated into, or forms part of, this announcement. The information
contained within this announcement is considered to be inside information
prior to its release.

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